Current Unemployment rate trends

Name

nInstitution

nCourse

nDate

nU.S Statistics, Labor and Data

nCurrent Unemployment rate trends

nReports indicate that the rate of unemployment reduced from 5 percent in 31st December 2015 to 4.9 percent in January 2016 in the United States. In addition, employment payroll in non-farm activities improved by approximately 151000 (Bureau of Labor Statistics, 1). The number of unemployed people in the country was nearly 7.8 million in January 2016.

nHighest employment rate

nSince 2000, the year that experienced highest rate of employment was January 2016. Statistics indicated that the global economic crisis affected the economy of the U.S leading to 2007-09 recession. From 2008, the rate of unemployment in the country increased from 5 percent to 10 percent in 2009 (Trading Economics, 1). In addition, since recession, the rate of unemployment reduced in 2016 to 4.9 percent. Consequently, the number of unemployed people has reduced to 7.8 million in 2015 from 15.5 million in 2009.

nComparison of employment situation

nStatistics indicate that the rate of employment in the current increased since global economy crisis. For instance, the unemployment rate was 4.90 percent in January 2016 as compared to 5.70 percent 2015 (Bureau of Labor Statistics, 1). Similarly, the unemployment rate in December 2015 was 5.00 percent as compared to 5.60 percent in 2014 (Trading Economics, 1). This indicate rise of rate of employment.

nCorrelation between real GDP and unemployment

nThe rate of unemployment is an indicator in the economy that determines the percent of jobless people who are searching for jobs. According to Okuns law, there is an association between rate of economic growth and rate of unemployment (Ball, Leigh and Loungani, 23). Moreover, gross domestic product (GDP) represents the economic growth. Therefore, when the rate of unemployment increases in the country, it is likely to reduce the GDP. According to Okuns law, output in the economy is dependent on labor force in the process of production (Ball, Leigh and Loungani, 32). In this regard, there is a positive correlation between employment and output. The rate of unemployment in the U.S is reducing meaning that its economy is increasing.

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nWork Cited

nBall, Laurence M, Daniel Leigh, and Prakash Loungani. Okun’s Law. Washington, D.C.: International Monetary Fund, 2013. Print.

nBureau of Labor Statistics,. “Labor Force Statistics From The Current Population Survey”. Data.bls.gov. N.p., 2016. Web. 1 Mar. 2016.

nTrading Economics,. “United States Unemployment Rate | 1948-2016 | Data | Chart | Calendar”. Tradingeconomics.com. N.p., 2016. Web. 1 Mar. 2016.